Help owners do what’s best for their top people

Key Person Replacement Insurance

A Key Person Replacement (KPR) insurance policy (HH772) provides benefits to a business if a key employee critical to the success of the business becomes totally disabled. Benefits can be used at the discretion of the employer.

The policy is conditionally renewable to age 65 with guaranteed premiums. Plus, key employees insured with KPR policies are not limited in the amount of Principal Life DI coverage they may qualify for.

1 Works at least 30 hours a week in a key person position and has held that position for at least 12 months. Employee can only be insured as a key person under one business entity.
2 If the insured is an owner, the business must be in operation for at least one year for fee-for-service businesses and three years for others.
3 If both monthly and lump sum benefits are applied for, the elimination period on the monthly benefit must be less than the elimination period on the lump sum benefit.
4 Available when three or more employees with the same employer purchase Individual Disability Insurance from the same producer.

For producers. This presentation discusses Salary Continuation and Executive Bonus programs and the tax advantages they provide. It also highlights DI Retirement Security and Key Person Replacement insurance.